The budget of any country defines how a country is planning to spend in the coming year. It gives a glimpse to citizens about the sectors which are up for development and the sectors which might lag behind. It is expected that real estate in Patna and other parts of India altogether will reach about US$ 1 trillion by 2030 and by 2025 it will contribute 13% to the country’s GDP. Budget 2021 was very much awaited by the sectors like real estate in Patna to see what government has in store to reach these goals.
The government has given utmost priority to its motto of “housing for all”. In the last budget, an additional deduction of 1.5 lakh interest for a loan taken to purchase an affordable house was allowed by the government which has been extended up till March 31, 2022, by the finance minister. A tax holiday for one more year is allowed for the affordable housing projects as well in real estate in Patna and other cities.
The highest ever budget of Rs 1,18,101 crore have been allocated to NHAI (National Highways Authority of India), 217 projects worth over Rs 1,00,00 crore are to be completed under the National Infrastructure Pipeline, rural infrastructure development funds have been increased to Rs 40,000 crore and the metro rail is under constructions in 27 cities for which more funding is to be allotted. All these measures in the budget to boost infrastructure will be generating employment for laborers, will result in increased connectivity, and will lessen transportation costs benefiting real estate in Patna. This would also be a boost for material suppliers as supply would eventually become cheaper and faster which will contribute towards the timely completion of various projects under real estate in Patna.
The launch of a portal has been proposed in the budget that will collect information on gig, building, and construction workers. This will be extremely helpful in formulating health, housing, insurance, and food-related schemes for migrant workers in various states across India. The budget also focused on easy access to finance. Debt financing will be allowed for InVITs (Infrastructure Investment Trusts) and REITs (Real estate investment trusts). After abolishing DDT (dividend distribution tax) last year, now dividend payment to REIT/ InVIT will be exempted from TDS (tax deducted at source) as well. Finance minister Nirmala Sitharaman also provided a sum of Rs 20,000 crore to set up Development Financial Institution (DFI) to manage long term debt financing. These measures are taken to attract more and more investors towards this sector, helping it to grow further.
Patna is among the major tier 2 cities. It’s developing at a very fast pace, be it the upcoming metro rail or new international airport in Bihta. All these developments clubbed with provisions of this new budget are expected to positively impact real estate in Patna. Hence, this is the right time to invest in this sector to enjoy the perks that development brings in the future.
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